3Q16 presentation slides

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Resilient third quarter

operating performance

DBS Group Holdings

3Q 2016 financial results

2

Highlights

Resilient 3Q operating performance underpinned by income growth

and cost containment



3Q total income up 8% on year and stable on quarter to $2.93 billion



Expenses decline 5% on year and 7% on quarter to $1.20 billion



Profit before allowances up 19% on year and 6% on quarter to $1.73 billion



Strong operating results provide substantial headroom for higher

allowances to be taken as prudent measure

9M total income and profit before allowances at new highs



9M total income up 7% to record $8.71 billion from broad-based growth



Productivity gains improve cost-income ratio to 43% from 45%



Profit before allowances up 11% to $4.96 billion

Balance sheet remains sound



NPL at 1.3%, allowance coverage at 100% and at 204% with collateral



LCR at 115%, NSFR above 100%

3Q profit before allowances up 19% on year

1,066 1,071

2 97

121

60 ₁₂₄

134

17

3Q15 Net profit

Net interest income

Fee income

Other income

Expenses SP GP Tax and others

3Q16 Net profit

 Profit before allowances

up 19% from loan growth, higher non-interest income and lower costs

 Strong performance

provided headroom for higher GP

(S$m) 3Q16 YoY %

Total income 2,929 8

Expenses 1,199 (5)

Profit before allowances 1,730 19

Allowances 436 >100

Net profit 1,071 0

negative positive Impact on earnings:

+0%

+19%

-5% +32%

4

3Q earnings up 2% on quarter

1,051 1,071

42 86

327

18 ₁₄

397

6

2Q16 Net profit

Net interest income

Fee income

Other income

Expenses SP GP Tax and others

3Q16 Net profit

 Higher non-interest

income offsets lower NIM

 Lower costs result in 6%

increase in profit before allowances

 GP taken as prudent

measure

(S$m) 3Q16 QoQ %

Total income 2,929 0

Expenses 1,199 (7)

Profit before allowances 1,730 6

Allowances 436 19

Net profit 1,071 2

negative positive Impact on earnings:

-7%

9M profit before allowances up 11%

3,316 3,325

235

157

172

113 12

91

589

9M15 Net profit

Net interest income

Fee income

Other income

Expenses SP GP Tax and others

9M16 Net profit

 Profit before allowances

up 11% from broad-based total income growth as well as productivity gains

 Cost-income ratio

improves to 43% from 45%

 Higher SP due largely to

single exposure

(S$m) 9M16 YoY %

Total income 8,713 7

Expenses 3,749 2

Profit before allowances 4,964 11

Allowances 972 96

Net profit 3,325 0

negative positive Impact on earnings:

+4% +9%

+2% +14%

1,690 1,743 1,813 1,854 1,833 1,833 1,815 1.69

1.75 1.78

1.84 1.85 1.87

1.77

6

(S$m)

9M 2016 9M

2015

Net interest margin (%)

2Q 1Q

2015

3Q

5,246 5,481

1.83 1.74

4Q 2Q

1Q 3Q

2016

3Q NIM declines to 1.77% from lower SGD interest

rates and higher liquidity buffers

37 162 93 2 (S$bn) Other IBG CBG Trade 294 +2 -1 +3 +2 Loans +2 0 +5 +4 QoQ Reported Underlying

 Underlying loan

growth up 1% or $3 billion on quarter, and 5% or $13 billion year-to-date

 Non-trade loan

growth led by

corporate loans and continued market share gains in

Singapore housing loans

 Trade loans little changed on quarter

+5 -2 +13 +10 +4 -4 +7 +7 YTD Reported Underlying Gross loans

Loans up 1% on quarter in constant-currency

terms

8

(S$bn)

Other funding comprises senior medium term notes, commercial papers, negotiable certificates of deposit, other debt securities and covered bonds

Other funding Deposits Loans 281 324 280 306

285 318 283

320

274

314

285 310 290

324 33

36 35 38 25 35 29

LDR Ratios (%) LCR Mar 15 89 115 Sep 16 87 354 357 342 Jun 15 92 131 90 121 Sep 15 353 Dec 15 88 122 358 135 Mar 16 87 119 339 Jun 16 345 92 116

Deposits increase 5% on quarter as liquidity

buffers built up

2016 2015

Gross fee income

145 139 133 139 142 148 147

167 175 ₁₃₇

120 176 179 201

123 111

120 ₈₈ 124

120 110

102 ₁₀₅

107

120

114 108 123

26 52

31 ₅₆

22 83 54 63 75

61 ₅₇ 64

62 67 0 100 200 300 400 500 600 700 800

1Q 2Q 3Q 4Q 1Q 2Q 3Q

417 437 479 556 354 354 314 345 109 159 199 193 -150 350 850 1,350 1,850 9M 9M 1,872 2,044 (S$m) 626 589 Trade and transaction services Wealth Management Loan-related Cards Investment banking Others 657 +0% QoQ 580 702 +19% YoY 2016 2015 642 700

3Q fee income up 19% on year from broad-based

growth

+9% YoY

10

(S$m) ₂₀₁₆9M ₂₀₁₅9M YoY %

Total income 3,961 4,015 (1)

Corporate 2,797 2,851 (2)

SME 1,164 1,164 0

Loans 2,137 2,134 0

Trade 554 720 (23)

Cash / SFS 602 469 28

Treasury 597 661 (10)

Investment banking 71 31 >100

Expenses 1,277 1,262 1

Profit before allowances 2,684 2,753 (3) Allowances 995 400 >100 Profit before tax 1,689 2,353 (28)

Assets (S$bn) 224 228 (2) GTS deposits (S$bn) 125 124 1

 Total income stable as

higher cash

management and investment banking income offsets lower trade and treasury customer activities

 Higher SP due largely

to single exposure

 Assets fall 2% or $4

billion as decline in trade loans more than offsets growth in non-trade loans and other assets

SFS is Security and Fiduciary Services

(S$m) ₂₀₁₆9M ₂₀₁₅9M YoY %

Total income 3,198 2,644 21

Retail 1,939 1,562 24

Wealth Management 1,259 1,082 16

Loans and deposits 1,864 1,435 30

Investment products 865 764 13

Cards 426 401 6

Others 44 45 (2)

Expenses 1,728 1,641 5

Profit before allowances 1,470 1,003 47

Allowances 94 78 21

Profit before tax 1,376 925 49

AUM (S$bn) 159 143 11

SGD savings (S$bn) 105 104 1

 Total income increases

21% from higher loan and deposit volumes, NIM, bancassurance and cards income

 Expenses up 5%,

resulting in improved cost-income ratio

 Market share for SGD

savings accounts maintained at 52%

CBG 9M income and earnings rise to new highs

2016 2015

889 865

386 ₂₇₇

226 251 307 271 287

978 ₉₃₂

335

335 ₃₀₈

251 301 323 308

52 ₅₂

46

55 58

50 50

54

52

9M 9M 1Q 2Q 3Q 4Q 1Q 2Q 3Q

12 (S$m) Customer income / total treasury income (%) Other treasury income Customer income 721 612 534 11% YoY 502 -27% 595 -QoQ -5% 6% 608 2016 2015 1,867 1,797 -4% -5% -3% 594

3Q treasury customer income stable on year;

other treasury income up 27%

Treasury customer income is included under IBG/CBG segment income. It is included in this chart for a complete product view.

(S$m)

1,65 0

1,68 8

2,00 8

2,06 1 45

43

9M

3,658 3,749

Cost / income (%)

Other expenses Staff expenses

9M

509 549 592 599 559 602 527

672 669 667 643 706 683 672

43 45

46 47

44 44

41 YoY growth (%)

1,199

1,181 1,218 1,259 1,242 1,265

1Q 2Q 3Q 4Q 1Q 2Q

2015 2016

2016 2015

1,285

3Q

13 16 14 ₁₀

7 ₆

(5)

Underlying headcount 21,460 21,489 21,898 21,996 22,037 21,814 21,880

Year-on-year cost growth deceleration improves

9M cost-income ratio to 43%

14

889

602 12

41

11 ₃₇

127

138

27

9M15 Net profit

Net interest income

Fee income

Other income

Expenses SP GP Others 9M16 Net profit

(S$m) 9M16 YoY % Underlying

YoY %

Total income 1,590 (10) (10)

Expenses 688 (2) (2)

Profit before allowances 902 (15) (15)

Allowances 195 >100 >100

Net profit 602 (32) (32)

negative positive Impact on earnings:

 NIM improves

12 bp to 1.77%

 Non-interest

income affected by weak market

 Higher SP from

RMB derivative exposures

-1% _-9%

-34%

-2%

(S$m) 3Q

2016

2Q 2016

3Q 2015

NPAs at start of period 3,854 3,048 2,571

New NPAs 1,055 1,105 339

Upgrades, recoveries and translation (88) (212) (74)

Write-offs (491) (87) (287)

NPAs at end of period 4,330 3,854 2,549

NPL ratio (%) 1.3 1.1 0.9

SP / loans (bp) 30 48 20

New NPAs include oil and gas support service

exposure that is well-collateralised

16

(S$m)

Specific allowances

932

3,163

915

3,222

908

3,182

1,404

2,947

1,212

3,128

Sep 15

NPA

Cumulative general and specific allowances as % of:

100 161

Sep 16

148 Dec 15

134 113

Mar 16 Jun 16

General allowances

Unsecured NPA _{324 303 286 226 204}

Surplus* $110m

* per Pillar 3 disclosures

Allowance coverage at 100% and at 204% with

collateral

GP eligible as Tier 2 capital $1.37bn *

12.9 13.5 14.3 14.4 14.9

1.9 1.9 1.7 1.9

1.6

RWA (S$bn) (%)

Tier 2

Sep 15 Tier 1

Fully phased-in

Common Equity Tier 1 (%) Transitional

Mar 16

274 12.4 13.5

14.8 16.0

Total 16.5

Dec 15

279 11.9 12.9

271 13.5 14.4 15.4

Sep 16

269 13.2 14.0

Leverage ratio (%) _{7.8 7.8}

Jun 16

268 13.4 14.2

7.7 16.3

7.3 7.1

18

In summary

–

resilient third quarter operating

performance

Growth in total income underpinned by multiple business

engines

Past investments to digitise as well as strategic cost

management efforts yielding productivity gains, boosting profit

before allowances

Headroom for higher general and specific allowances while

maintaining earnings resilience

Strong balance sheet to weather further NPL increases

Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or

Supplementary slides

DBS Group Holdings

3Q 2016 financial results

20

9M earnings unchanged on year

(S$m) ₂₀₁₆9M ₂₀₁₅9M YoY_%

Net interest income 5,481 5,246 4

Fee income 1,816 1,659 9

Trading income 960 915 5

Other income 456 329 39

Non-interest income 3,232 2,903 11

Total income 8,713 8,149 7

Staff expenses 2,061 2,008 3

Other expenses 1,688 1,650 2

Expenses 3,749 3,658 2

Profit before allowances 4,964 4,491 11

General allowances (59) 54 NM

Specific allowances 1,031 442 >100

Allowances 972 496 96

Net profit 3,325 3,316 0

One-time items - 136 (100)

3Q profit before allowances up 19% on year

(S$m) ₂₀₁₆3Q ₂₀₁₅3Q YoY_{% 2016}2Q QoQ_%

Net interest income 1,815 1,813 - 1,833 (1)

Fee income 614 517 19 628 (2)

Trading income 338 286 18 307 10

Other income 162 93 74 151 7

Non-interest income 1,114 896 24 1,086 3

Total income 2,929 2,709 8 2,919 0

Staff expenses 672 667 1 683 (2)

Other expenses 527 592 (11) 602 (12)

Expenses 1,199 1,259 (5) 1,285 (7)

Profit before allowances 1,730 1,450 19 1,634 6

General allowances 169 35 >100 (228) NM

Specific allowances 267 143 87 594 (55)

Allowances 436 178 >100 366 19

Net profit 1,071 1,066 - 1,051 2

One-time items - - - -

Cost-income ratio fell on year and on quarter

22

(%) 3Q

2016

3Q 2015

2Q 2016

9M 2016

9M 2015

Net interest margin 1.77 1.78 1.87 1.83 1.74

Fee income/total income 21 19 22 21 20

Non-interest income/total

income 38 33 37 37 36

Cost/income 41 46 44 43 45

ROE 10.0 10.9 10.1 10.7 11.6

Loan/deposit 89 90 92 89 90

SP/loans (bp) 30 20 48 32 20

(S$m) ₂₀₁₆9M ₂₀₁₅9M YoY_% YoY_%

Net interest income 975 986 (1) (1)

Non-interest income 615 779 (21) (21)

Total income 1,590 1,765 (10) (10)

Expenses 688 700 (2) (2)

Profit before

allowances 902 1,065 (15) (15)

General allowances (1) (28) NM NM

Specific allowances 196 58 >100 >100

Allowances 195 30 >100 >100

Net profit 602 889 (32) (32)

Net interest margin (%) 1.77 1.65

Loan growth (%) (2)

Non-trade growth (%) 5

Trade growth (%) (26)

Deposit growth (%) (4)

Hong Kong’s 9M earnings at $602m

24

(S$m) ₂₀₁₆3Q ₂₀₁₅3Q YoY_% YoY_{% 2016}2Q QoQ_% QoQ_%

Net interest income 325 356 (9) (6) 320 2 1

Non-interest income 241 248 (3) 0 200 21 21

Total income 566 604 (6) (3) 520 9 9

Expenses 228 240 (5) (2) 232 (2) (2)

Profit before

allowances 338 364 (7) (4) 288 17 17

General allowances (2) (31) NM NM 24 NM NM

Specific allowances 72 18 >100 >100 72 - (2)

Allowances 70 (13) NM NM 96 (27) (27)

Net profit 232 329 (29) (27) 161 44 43

Net interest margin (%) 1.71 1.73 1.80

Loan growth (%) (2) 2

Non-trade growth (%) 5 3

Trade growth (%) (26) (4)

Deposit growth (%) (4) 4

Hong Kong’s profit before allowances up 17% on

Regional 9M income 4% lower on year

Figures for operations outside of Singapore and Hong Kong

(S$m) 9M

2016

9M 2015

YoY %

Net interest income 807 840 (4)

Non-interest income 560 577 (3)

Total income 1,367 1,417 (4)

Expenses 830 847 (2)

Profit before allowances 537 570 (6)

Allowances 316 294 7

NPL ratio up moderately, allowance coverage

sound

NPA (S$m)

Cumulative general and specific allowances as % of: NPA

Unsecured NPA SP / loans (bp)

0.9 0.9 _0.9 0.9 1.0

1.1

1.3

Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 >90 days overdue

<90 days overdue Not overdue 100 204 30 3,048 20% 63% 17%

NPL ratio (%)

26 161 294 22 29% 58% 13% 161 324 20 2,571 22% 68% 10% 2,549 21% 67% 12% 148 303 17 2,792 19% 63% 18% 134 286 18 3,854 160 304 19 2,590 18% 64% 18% 113 226 48 20% 55% 25% 4,330

(S$m) ₂₀₁₆3Q ₂₀₁₆2Q ₂₀₁₅3Q Add charges for

New NPLs 94 286 89

Existing NPLs 173 81 112

267 367 201

Subtract charges for

Upgrading 1 1

-Settlements 30 14 41

Recoveries 16 16 18

47 31 59

Total SP charges for loans 220 336 142

SP/loans (bp) 30 48 20

(S$m) Sep 16 Jun 16

Government securities 22,763 22,593

Less than 3 years 15,128 14,864

3 to 5 years 3,473 3,046

5 to 10 years 3,177 3,653

More than 10 years 985 1,029

Supranational, bank and

corporate bonds 13,681 14,330

Equities 1,620 1,681

Total 38,064 38,603

AFS reserves 603 512

AFS duration remains short

28

European AFS exposure mostly in AAA and AA

entities

(S$m)

Supranational 469 0 469

France 0 14 14

Germany 158 0 158

Netherlands 0 3 3

United Kingdom 683 140 823

Total 1,310 157 1,467

Government / Govt-owned

Bank /

Corporates Total

*

*

*

* Supranational and German entities rated AAA/Aaaby S&P, Moody’s and Fitch. UK entities rated

30

Deposits growth built liquidity buffer

QoQ YoY

(S$bn) Sep 16 Reported Underlying Reported Underlying

Deposits 324 14 12 6 14

By product

CASA 201 4 3 10 12

Fixed deposits 120 9 8 (3) 1

Others 3 1 1 0 0

By currency

Singapore dollar 150 7 7 9 9

US dollar 99 5 4 7 11

HK dollar 33 2 2 (3) (1)

Chinese yuan 10 1 1 (6) (5)

Others 32 (1) (2) (1) 0

LDR (%) Sep 16 Jun 16 Sep 15

Overall 89 92 90

Singapore dollar 81 85 81

Wealth Management segment

Income (S$m) 2010 Quarterly Average 2011 Quarterly Average 2012 Quarterly Average 2013 Quarterly Average 2014 Quarterly Average

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

127 155

197

AUM

(S$b) 78 86 96

Comprising Treasures, Treasures Private Client and Private Bank Total earning assets and AUMs at end of period

231 109 365 143 7% qoq 34% yoy 5% qoq 11% yoy 134 275 141 338 143 378 334 383 Record High 146 147 Total Earning Assets

(S$b) 91 103 116 134 176

5% qoq 10% yoy

167 174 178 180 182

423 159 196 1,082 2015 9M 1,259 2016 9M +16% yoy 453 151 187

32

SME segment

Income (S$m)

2010 Quarterly

Average

2011 Quarterly

Average

2012 Quarterly

Average

2013 Quarterly

Average

2014 Quarterly

Average

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

260 273

307

342

396

2% qoq 1% yoy

352 377

391

367 385 1,164

2015 9M

1,164 2016 9M flat yoy

Global transaction services

Income (S$m) 2010 Quarterly Average 2011 Quarterly Average 2012 Quarterly Average 2013 Quarterly Average 2014 Quarterly Average

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

185

270

352

Assets

(S$b)(a) 20 45 52 63

Trade Cash/ SFS

Deposits

(S$b) 65 81 95 119

Assets and deposits at end of period

(a) Trade assets; includes bank exposures and loans of financial institutions 371 420 2% qoq flat yoy 56 114 2% qoq 18% yoy 3% qoq 1% yoy 405 ₃₉₇ 62 135 55 131 403 53 124 416 ₄₀₅ 47 127 39 121 1,220 2015 9M 1,198 2016 9M -2% yoy 392 43 125 401 42 122

34

Treasury customer flows

Income (S$m)

2010 Quarterly

Average

2011 Quarterly

Average

2012 Quarterly

Average

2013 Quarterly

Average

2014 Quarterly

Average

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

172

206 217

259

3Q16 customer income: 52% of total Treasury income

335

5% qoq flat yoy 284

335

308 ₃₀₁

251

323 978

2015 9M

932 2016 9M -5% yoy

Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or

Resilient third quarter

operating performance

DBS Group Holdings

3Q 2016 financial results

30

Deposits growth built liquidity buffer

QoQ

YoY

(S$bn)

Sep 16

Reported

Underlying

Reported

Underlying

Deposits

324

14

12

6

14

By product

CASA

201

4

3

10

12

Fixed deposits

120

9

8

(3)

1

Others

3

1

1

0

0

By currency

Singapore dollar

150

7

7

9

9

US dollar

99

5

4

7

11

HK dollar

33

2

2

(3)

(1)

Chinese yuan

10

1

1

(6)

(5)

Others

32

(1)

(2)

(1)

0

LDR (%)

Sep 16

Jun 16

Sep 15

Overall

89

92

90

Singapore dollar

81

85

81

Wealth Management segment

Income (S$m) 2010 Quarterly Average 2011 Quarterly Average 2012 Quarterly Average 2013 Quarterly Average 2014 Quarterly Average

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

127 155

197

AUM

(S$b) 78 86 96

231 109 365 143 7% qoq 34% yoy 5% qoq 11% yoy 134 275 141 338 143 378 334 383

Record

High

146 147 Total Earning

Assets 10% yoy

423 159 1,082 2015 9M 1,259 2016 9M +16% yoy 453 151

32

SME segment

Income (S$m)

2010 Quarterly

Average

2011 Quarterly

Average

2012 Quarterly

Average

2013 Quarterly

Average

2014 Quarterly

Average

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

260 273

307

342

396

2% qoq 1% yoy

352 377

391

367 385

1,164

2015 9M

1,164

2016 9M flat yoy

Global transaction services

Income (S$m) 2010 Quarterly Average 2011 Quarterly Average 2012 Quarterly Average 2013 Quarterly Average 2014 Quarterly Average

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

185

270

352

Assets

(S$b)(a) 20 45 52 63

Trade Cash/ SFS Deposits 371 420 2% qoq flat yoy 56 2% qoq 18% yoy 1% yoy 405 ₃₉₇ 62 55 403 53 416 ₄₀₅ 47 39 1,220 2015 9M 1,198 2016 9M -2% yoy 392 43 401 42

34

Treasury customer flows

Income (S$m)

2010 Quarterly

Average

2011 Quarterly

Average

2012 Quarterly

Average

2013 Quarterly

Average

2014 Quarterly

Average

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

172

206 217

259

3Q16 customer income: 52% of total Treasury income

335

5% qoq flat yoy 284

335

308 ₃₀₁

251

323

978

2015 9M

932

2016 9M -5% yoy

Resilient third quarter

operating performance

DBS Group Holdings

3Q 2016 financial results